Scam in stock market?
RPG Enterprise Chairman Harsh Goenka’s recent statement has caused a stir, alleging a resurgence of scams similar to Harshad Mehta and Ketan Parikh, now occurring in Kolkata within the steel sector. Goenka has urged the Finance Ministry and SEBI to investigate to protect small investors from potential losses. Despite this plea, there has been no response from the Finance Ministry or SEBI. The NSE Nifty 50 index has nearly doubled in the past five years, reflecting a growing Indian economy with increasing company profits. SEBI’s Madhavi Puri Booch had cautioned about potential market bubbles, emphasizing the need for investor caution to prevent losses. AMFI conducted stress tests on small-cap funds in response to this warning, leading some funds to halt new investments.
Harsh Goenka claims a similar scam is unfolding in Kolkata
Harsh Goenka has provided limited details regarding the accusations, referencing two past scams that occurred in Mumbai. He now claims a similar scam is unfolding in Kolkata. The Harshad Mehta scam of 1992 involved Mehta’s market dominance and borrowing money from government banks through fraudulent means. This led to substantial losses for small investors. Following this scandal, SEBI was established with enhanced authority. Ten years later, Ketan Parikh was involved in another scam, focusing on TMT shares and engaging in circular trading to inflate prices. Despite no significant stock market frauds since then, SEBI and the government remain vigilant, awaiting their response to Goenka’s recent claims.
Legal warning: This article serves purely informational purposes. Refrain from making investment decisions based on its content. It is advisable to consult SEBI-approved advisors for stock market investment guidance.
